Arizona Mortgage Refinance Calculator
Arizona Mortgage Refinance Calculator
By SoFi Editors | Updated November 20, 2025
Refinancing your home loan can be a strategic move that presents you with opportunities to save money, adjust your loan terms to better suit your financial needs, or access the equity you’ve built in your home over time. A mortgage refinance calculator can help you assess the potential financial impact of refinancing your mortgage, allowing you to make an informed decision.
A refi calculator can also help you understand how much you might need to put down if you decide to refinance, which can be particularly useful if you are looking to reduce your monthly payments or shorten the loan term. This article will guide you through important factors to consider during the mortgage refinance process and demonstrate how to effectively use an Arizona home refi calculator to make a decision that is beneficial for your situation.
Key Points
• Refinancing can lower monthly payments or interest rates, potentially saving you money.
• A refi mortgage calculator helps estimate savings and break-even points.
• Consider the impact of loan terms and interest rates to determine if refinancing aligns with your financial goals.
• Research and compare offers from multiple lenders to find the best rates and terms.
• Check your credit score and correct any errors before applying for a mortgage refinance.
Arizona Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your home loan, excluding interest charges. This amount affects how soon you can refinance a mortgage.
• Current/New interest rate: Current mortgage rates fluctuate based on market conditions, and your credit score affects the rate you will qualify for. The difference between your current and new interest rate can significantly impact your monthly payments and the total interest you will pay.
• Remaining/New loan term: The remaining loan term is the number of months left on your current mortgage, and the new loan term is the duration of the refinanced loan. Shorter terms reduce total interest paid but increase monthly payments, while longer terms do the opposite.
• Points: Mortgage points are optional upfront fees you can pay to lower your interest rate. Each point costs 1% of the loan amount and can reduce your rate by about 0.25%. You can use the calculator to determine if purchasing points is financially beneficial.
• Other costs and fees: Mortgage refinancing costs include origination fees, appraisal fees, and attorney fees, which typically range from 2% to 5% of the new loan amount. Input your estimate into the calculator to understand the impact on your break-even point.
• Monthly payment: Your monthly payment includes the principal and interest on your home loan. Use the calculator to compare your current and potential new monthly payments to assess the financial impact of refinancing.
• Total interest: Total interest is the cost you pay to the lender over the life of the loan, excluding the principal amount. Compare the total interest of your current and refinanced loans to determine long-term savings.
How to Use the Arizona Mortgage Refinance Calculator
To use the Arizona mortgage refinance calculator, input information about your current loan and desired refinance. The calculator will estimate your break-even point and help you assess the overall impact on your monthly payments and total interest paid.
Step 1: Enter Your Remaining Loan Balance
Enter your remaining home loan balance. This is the principal amount you still owe on your current mortgage.
Step 2: Add Your Current Interest Rate
Input your current interest rate. You can find this on your latest mortgage statement or by contacting your lender.
Step 3: Estimate Your New Interest Rate
Estimate your new interest rate by comparing offers from different lenders or checking online for current mortgage rates available in your area. A lower rate can reduce your monthly payments or total interest paid, especially if rates have dropped since you took out your initial mortgage.
Step 4: Select Your Remaining Loan Term
Input the number of years left on your current mortgage so the home refi calculator can estimate the total interest you’ll pay if you do not refinance.
Step 5: Choose a New Loan Term
Choose a new loan term to determine how you can meet your financial goals. A longer term can lower your monthly payments, while a shorter term can save on interest.
Step 6: Enter Any Points You Intend to Purchase
Enter any discount points you plan to purchase. Each point costs 1% of the loan amount and lowers the interest rate by 0.25%. Use the refi mortgage calculator to identify whether purchasing points will benefit you.
Step 7: Estimate Your Other Costs and Fees
Estimate other costs and fees, such as origination, credit report, home appraisal, and attorney fees. These costs can range from 2% to 5% of the loan amount.
Step 8: Review Your Break-Even Point
Your break-even point is the number of months it will take for the total savings from the new loan to equal the total cost of refinancing. If you plan to stay in your home beyond this point, refinancing may be financially beneficial.
Benefits of Using a Mortgage Refinance Payment Calculator
A mortgage refinance calculator helps you understand how to refinance a mortgage and assess if refinancing can lower your monthly payments or interest rate, potentially saving you money. It compares current and potential loan terms, showing how interest rates and loan terms affect your payments and total interest paid. Even a small interest rate reduction can lead to significant savings. The calculator also illustrates the impact of switching to a shorter-term loan, which saves on interest but increases monthly payments.
What Is the Break-Even Point in Refinancing?
The break-even point is the time it takes to recoup the closing costs on your refinance through the savings on your new monthly payment. The calculator finds this figure by subtracting your estimated monthly payment after refinancing from your current mortgage payment, then dividing the closing costs by the monthly savings.
For example, if refinancing saves you $100 a month and your total closing costs are $2,500, it would take 25 months to cover those costs and start seeing savings. If you don’t plan to stay in your home at least that long, refinancing your current loan might not make sense.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Typical Closing Costs for a Refinance in Arizona
Refinancing in Arizona involves costs that typically range from 2% to 5% of the new loan. Many of these costs depend on the type of mortgage loan you choose. Fixed costs include application fees (up to $500), credit reports ($25-$75), appraisals ($600-$2,000), recording fees ($25-$250), and attorney fees ($500-$1,000+).
Percentage-based costs include origination fees (0.5%-1%), title search and insurance (0.5%-1%), points (1% of the mortgage amount per point), and mortgage insurance (the cost of which varies depending on the type of mortgage loan you choose). Refinancing may not require certain purchase-related fees, such as title insurance and inspection fees.
Reduce your refinancing costs by comparing lenders’ offers, negotiating fees, and keeping your credit score as high as possible. Some lenders offer a no-closing-cost refinance, but as the interest rate is often increased to cover the closing fees, these are not necessarily more cost-effective.
Keep in mind that refinancing a jumbo loan may have higher associated costs.
Tips on Reducing Your Mortgage Refinance Payment
There are steps you can take to reduce the size of your mortgage refinance payment. Try to:
• Build up your credit score before refinancing to secure better rates.
• Compare rates and terms from multiple lenders.
• Extend the term of your loan to lower monthly payments.
• Shop for a lower homeowners insurance rate by increasing your deductible or bundling policies.
The Takeaway
Refinancing your mortgage can be a strategic financial move, but it’s important to understand the costs and benefits. An Arizona mortgage refinance calculator helps estimate potential savings, the break-even point, the impact on your monthly payments, and the total interest you will pay. Consider your long-term financial goals and the specific requirements of your situation before committing to a refinance.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much does it cost to refinance your mortgage in Arizona?
Refinancing your mortgage in Arizona involves various costs, typically 2% to 5% of the new loan amount. These costs may include origination, credit report, title search, and escrow fees.
How much does it cost to refinance a $450,000 mortgage?
Refinancing a $450,000 mortgage involves costs ranging from 2% to 5% of the loan amount, or between $9,000 and $22,500. A mortgage refinance calculator can help you estimate the impact of these costs on your potential savings.
Do you have to put 20% down to refinance?
No, you do not need to put 20% down to refinance. However, having at least 20% equity in your home can help you avoid private mortgage insurance. If you have less than 20% equity, you may still qualify for a refinance but will likely have to pay for mortgage insurance.
At what point is it not worth it to refinance?
Refinancing may not be worth it if your monthly savings are minimal and the break-even point is longer than the time you plan to stay in your home. For example, if you have $5,000 in closing costs and save $100 per month, it would take 50 months to break even. If you’re refinancing to a longer term, you might end up paying more in interest over the life of the loan.
What month is best to refinance?
The best month to refinance depends on prevailing mortgage rates and your financial goals. Historically, rates tend to be lower in the fall and winter, often making these months more favorable for refinancing. No matter the season, be sure to compare rates from multiple lenders before making your decision.
Which bank is best for refinancing?
The best bank for refinancing depends on your financial situation and the rates and terms they offer. Compare multiple lenders to find the one with the most competitive rates and favorable terms. Consider factors such as a lender’s reputation, customer service, and available refinance options.
What credit score do you need for refinancing?
To qualify for a mortgage refinance, you typically need a minimum credit score of 620. However, a higher score, such as 740 or above, may help you secure better interest rates and terms. You can improve your score by paying bills on time, reducing debt, and maintaining a low credit utilization ratio.
What are the advantages of refinancing your home?
A mortgage refinance can reduce monthly payments or total interest paid or accelerate payoff with a shorter term. A cash-out refinance allows borrowing extra funds for home improvements or debt consolidation.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to a hard credit pull. However, long-term benefits such as lower monthly payments and overall interest paid often outweigh this decrease. Minimize the impact by shopping for rates within a 14-day window. Using a cash-out refinance to pay off debts can improve your debt-to-income ratio and potentially boost your score.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
SOHL-Q425-067
Get prequalified in minutes for a SoFi Home Loan.
Alaska Mortgage Refinance Calculator
Alaska Mortgage Refinance Calculator
By SoFi Editors | Updated November 20, 2025
Refinancing your mortgage can improve your long-term finances. However, it’s important to understand the savings and costs involved before making any decisions regarding your home loan. An Alaska mortgage refinance calculator can help you gauge the financial impact of refinancing by providing estimates for your monthly payments, the total interest you might pay over the life of the loan, and your break-even point. This guide will explain how you can use a mortgage refinance calculator to help you make an informed decision about whether mortgage refinancing aligns with your financial goals.
Key Points
• An Alaska mortgage refinance calculator can help you make an informed decision about whether refinancing is right for you.
• Mortgage refinancing costs typically range from 2% to 5% of the loan amount, and you should factor them into your decision-making process.
• Extending the loan term can lower monthly payments but increase the total interest you’ll pay, while shortening the term can do the opposite, so it’s important to consider your long-term financial goals carefully.
• Purchasing mortgage points can lower your interest rate, reduce your monthly payments, and lead to significant long-term savings, especially if you plan to remain in your home for an extended period.
• The break-even point, calculated using a refi calculator, can help you determine if the savings from refinancing will outweigh the upfront costs within a reasonable time frame.
• Improving your credit score can help you secure a lower interest rate and more favorable loan terms when refinancing.
Alaska Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your current mortgage, excluding any accumulated interest charges. How much you still owe affects how soon you can refinance a mortgage.
• Current/New interest rate: Interest is the percentage of the loan amount charged annually by the lender. A new interest rate can significantly affect both your monthly payments and the total interest you’ll pay over the duration of the loan.
• Remaining/New loan term: The remaining loan term is the time left on your current mortgage, and the new loan term is the duration of the refinanced loan. Shorter terms will reduce the total interest paid but increase your monthly payments.
• Points: Mortgage points, or discount points, are optional upfront fees paid to lower the interest rate on your loan. Each point costs 1% of the loan amount and can reduce your interest rate by 0.25%.
• Other costs and fees: Other costs associated with refinancing include origination fees, appraisal fees, and attorney fees. These expenses typically range from 2% to 5% of the new loan amount.
• Monthly payment: Your monthly payment covers the principal and interest on your mortgage loan. A home refi calculator helps you compare your current and estimated new monthly payments.
• Total interest: Total interest is the amount you pay to the lender over the duration of the loan, excluding the principal. Using a refi mortgage calculator to compare the total interest you’ll pay on your existing mortgage and the estimated total interest following a mortgage refinance can help you identify potential long-term savings.
How to Use the Alaska Mortgage Refinance Calculator
To use the Alaska mortgage refinance calculator, enter your current mortgage details and proposed refinance terms. The calculator will estimate your break-even point and assess the overall impact on your monthly payments and total interest paid.
Step 1: Enter Your Remaining Loan Balance
Enter your remaining home loan balance. This is the principal amount you still owe on your current mortgage.
Step 2: Add Your Current Interest Rate
Input the interest rate you have now to estimate your current monthly payments and total interest costs. You can find this on your latest mortgage statement or by contacting your lender.
Step 3: Estimate Your New Interest Rate
Rates may have dropped since you took out your initial loan, so compare offers from different lenders or check current mortgage rates to estimate your new interest rate. A lower rate can reduce your monthly payments or total interest paid.
Step 4: Select Your Remaining Loan Term
Enter the number of years left on your current mortgage. The refi calculator will then estimate the total interest you’ll pay if you don’t refinance.
Step 5: Choose a New Loan Term
Select a new loan term that aligns with your financial goals. A longer term can lower monthly payments but accrue more interest, while a shorter term can reduce the total interest paid but increase monthly payments.
Step 6: Enter Any Points You Intend to Purchase
Enter any discount points you intend to purchase. Each point costs 1% of the loan amount and reduces the interest rate by 0.25%. Using the mortgage refinance calculator can help you determine whether purchasing points is beneficial to your financial situation.
Step 7: Estimate Your Other Costs and Fees
Estimate other costs and fees, such as origination, home appraisal, credit report, and attorney fees. These costs can range from 2% to 5% of the loan amount. Enter the estimated total into the refi calculator to see the impact on your potential savings.
Step 8: Review Your Break-Even Point
This is the number of months it will take for the total savings to equal the cost of refinancing your mortgage. A mortgage refinance may be beneficial if you plan to remain in your home beyond this point.
Benefits of Using a Mortgage Refinance Payment Calculator
Using a mortgage refinance calculator can help you determine if refinancing is a viable option to lower your monthly payments or interest rate. The tool provides a thorough comparison of your current and potential new terms, including monthly payments, interest rates, and total interest paid.
The calculator can help you determine how to refinance a mortgage by showing how different interest rates and loan terms impact your monthly payments and the total interest paid. By experimenting with various scenarios, you can evaluate whether refinancing will save you money in the long term and if the savings will outweigh the upfront costs.
What Is the Break-Even Point in Refinancing?
The break-even point is one of the most important factors to consider when deciding whether to refinance your mortgage. It is the time it takes to recoup the closing costs on your mortgage refinance through monthly savings. The refi mortgage calculator computes your break-even point by subtracting your new estimated monthly payment from your current mortgage payment, then dividing the closing costs by the monthly savings.
For example, if refinancing saves you $200 a month and your closing costs are $8,000, it would take 40 months to break even. If you plan to sell your home before reaching this point, refinancing may not be the best strategy. If you don’t see any savings, or the refinance shows a negative number, it might not make sense to refinance your current loan.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Typical Closing Costs for a Refinance in Alaska
Mortgage refinancing costs in Alaska typically range from 2% to 5% of the new loan amount. Fixed costs include application fees (up to $500), credit report fees ($25-$75), appraisal fees ($600-$2,000), recording fees ($25-$250), and attorney fees ($500-$1,000+).
Percentage-based costs include loan origination (0.5%-1%), title search and insurance (0.5%-1%), discount points (1% of the mortgage amount per point), and mortgage insurance (which varies depending on the type of mortgage loan you choose). Refinancing may not require certain fees, such as title insurance and inspection fees.
You can reduce your refinancing costs by comparing lenders, negotiating fees, and maintaining a high credit score. Some lenders offer a no-closing-cost refinance but will increase the interest rate to cover the closing costs, so they’re not always cost-effective.
Recommended: How and When to Refinance a Jumbo Loan
Tips on Reducing Your Mortgage Refinance Payment
Lowering your monthly mortgage payment before starting the refinancing process can help reduce your mortgage refinance payment. To achieve this, you could:
• Improve your credit score to secure lower interest rates.
• Extend the term of your loan, but remember that this may increase the total interest paid.
• Appeal your property tax to potentially reduce your annual tax bill.
• Shop for a lower homeowners insurance rate by increasing your deductible or bundling policies.
The Takeaway
Refinancing your mortgage can help you manage your finances effectively, but it’s a process that requires careful consideration. An Alaska mortgage refinance calculator is a tool that can help you estimate potential savings, associated costs, and your break-even point to determine if refinancing aligns with your long-term financial goals.
Whether you’re looking to lower your interest rate, change your loan term, or access home equity with a cash-out refinance, using a refi mortgage calculator can help you make a well-informed decision.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much does it cost to refinance your mortgage in Alaska?
Refinancing your mortgage in Alaska involves closing costs ranging from 2% to 5% of the new loan amount. These costs can include application, appraisal, credit report, and title insurance fees. Comparing offers from different lenders and negotiating these fees could help you reduce your refinancing costs.
How much does it cost to refinance a $400,000 mortgage?
Refinancing a $400,000 mortgage can cost between $8,000 and $20,000, or 2% to 5% of the loan amount. Fixed costs you must typically pay include lender fees, appraisal fees, and title search fees. A mortgage refinance calculator can estimate your total costs and potential savings.
Do you have to put 20% down to refinance?
You don’t need to put 20% down to refinance, but having at least 20% equity can help you secure better terms and avoid private mortgage insurance. To calculate your equity percentage, subtract the balance you owe on your mortgage principal from your home’s estimated value, and then divide this amount by your home’s value.
At what point is it not worth it to refinance?
Refinancing may not be worthwhile if your break-even point is too far in the future, relative to how long you plan to own your home. The break-even point is the time it takes for savings to cover closing costs. For example, if closing costs are $8,000 and you save $200 per month, it would take 40 months to break even. In this case, if you didn’t plan to own your home for at least 3 years, refinancing probably wouldn’t be beneficial. A mortgage refinance calculator can help you assess the long-term financial impact of refinancing.
What month is best to refinance?
The best month to refinance depends on prevailing mortgage rates and your financial goals. Rates are often lower during the fall and winter months, making these periods more favorable for refinancing. However, you should monitor current rates and ensure you’re financially stable before beginning the process.
Which bank is best for refinancing?
The best bank for refinancing depends on your specific financial needs. Consider factors such as interest rates, closing costs, and customer service. Comparing offers from multiple lenders will help you find one that best meets your requirements.
What credit score do you need for refinancing?
Most lenders require a minimum credit score of 620 for conventional loans. A higher score, such as 700 or above, can help you secure better interest rates and terms. Check your credit report and do what you can to improve your score before applying
What are the advantages of refinancing your home?
Refinancing can lower interest rates, reduce monthly payments, or decrease total interest paid. You could also access home equity through a cash-out refinance, which can provide funds for home improvements or debt consolidation.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to a hard inquiry. However, making your new payments on time can help your credit score recover and potentially improve over time. Conversely, not making your payments on time can harm your score. A mortgage refinance calculator can help you assess the financial impact of mortgage refinancing and make sure it is affordable before you apply.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
SOHL-Q425-066
Get prequalified in minutes for a SoFi Home Loan.
Alabama Mortgage Refinance Calculator
Alabama Mortgage Refinance Calculator
By SoFi Editors | Updated November 20, 2025
Refinancing your mortgage can help you manage your finances effectively and achieve your financial objectives. However, it’s important to be aware of the potential benefits and drawbacks. An Alabama mortgage refinance calculator can provide estimates of your potential savings and costs. Keep reading to gain a clearer understanding of the financial implications involved in this decision.
Key Points
• Using an Alabama mortgage refinance calculator can help you estimate potential savings and costs, making it easier to decide if refinancing aligns with your financial goals.
• A mortgage refinance can lead to a lower interest rate, leading to significant savings over the duration of the loan.
• Refinancing to a shorter loan term can reduce the total interest paid over the duration of the loan, while a longer term can lower monthly payments.
• Mortgage points, which cost 1% of the loan amount per point, can lower your interest rate and monthly payments.
• The break-even point, calculated by dividing closing costs by monthly savings, is used to determine whether refinancing is worth it based on how long you intend to stay in your home.
• Mortgage refinancing costs typically range from 2% to 5% of the new loan amount and include origination, appraisal, and attorney fees.
Alabama Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your existing mortgage loan. This figure determines how soon you can refinance a mortgage.
• Current/New interest rate: Interest is the percentage of the loan amount charged by the lender. The new interest rate you secure through refinancing can significantly impact your monthly payments or the total interest paid over the duration of the loan.
• Remaining/New loan term: The remaining loan term is the number of months left on your current mortgage. A new loan term can be shorter or longer, affecting your monthly payments and total interest costs.
• Points: Mortgage points are upfront fees paid to the lender to lower your interest rate. Each point costs 1% of the loan amount and can reduce your interest rate by .25%.
• Other costs and fees: Refinancing involves origination, appraisal, and attorney fees. They typically range from 2% to 5% of the new loan amount.
• Monthly payment: Your monthly mortgage payment includes the principal and interest. A refinance calculator helps you compare your current payment to the estimated payment after refinancing.
• Total interest: Total interest is the cost you pay to the lender over the duration of the mortgage. Comparing your current total interest to that of a potential refinance will help you determine your possible savings.
How to Use the Alabama Mortgage Refinance Calculator
To use the refi calculator effectively, provide information about your remaining loan balance, current interest rate, and the potential loan terms.
Step 1: Enter Your Remaining Loan Balance
Begin by entering your remaining home loan balance into the mortgage refinance calculator. This figure will give you a reliable estimate of your potential savings and costs. If you’re unsure about the figure, check your most recent mortgage statement or contact your lender for the outstanding balance.
Step 2: Add Your Current Interest Rate
Entering your current interest rate into the mortgage refinance calculator will allow it to provide a baseline for comparison, showing how much you’re currently paying in interest and how a new rate might affect your monthly payments and overall savings.
Step 3: Estimate Your New Interest Rate
By adding a new interest rate into the home refi calculator, you’ll see how it would affect your monthly payments and total interest paid. A 0.50% reduction can lead to substantial savings over the duration of the loan. You may also want to check current mortgage rates online in your area.
Step 4: Select Your Remaining Loan Term
Enter the number of months you have left on your current mortgage. This helps the calculator show how much you’ve already paid and how much you still owe, which allows you to explore the impact of a shorter or longer-term loan.
Step 5: Choose a New Loan Term
Selecting a new loan term will let you determine how it affects your monthly payments and total interest costs. A shorter term can reduce overall interest, while a longer term can lower monthly payments.
Step 6: Enter Any Points You Intend to Purchase
Provide the number of points you plan to buy. Each point costs 1% of the loan amount and can lower your interest rate.
Step 7: Estimate Your Other Costs and Fees
Don’t forget to include other costs such as lender, appraisal, and title insurance fees to get a more accurate estimate of your total expenses.
Step 8: Calculate Your Break-Even Point
The home refi calculator can then work out the break-even point by dividing closing costs by monthly savings. For example, if your closing costs are $5,000 and you save $100 per month, it would take 50 months to break even. Use the break-even point to ensure the refinancing aligns with your financial timeline.
Benefits of Using a Mortgage Refinance Payment Calculator
Using a mortgage refinance calculator can help you evaluate whether refinancing can lower your monthly payment or interest rate, potentially saving you money in the long term. It provides a comparison of your current and potential new mortgage terms.
By testing out different rates and loan terms, the calculator can help you decide how to refinance a mortgage. It will show you how refinancing may affect your monthly payments and the total interest you’ll pay. A decreased monthly payment could free up funds, whereas paying less total interest could result in substantial savings over the duration of the loan.
What Is the Break-Even Point in Refinancing?
The break-even point is the time it takes for the savings from your new mortgage to cover the closing costs of refinancing. To find this point, the calculator will subtract your estimated monthly payment after refinancing from your current mortgage payment, then divide the closing costs by this value.
For example, if refinancing saves you $100 a month and your closing costs are $2,500, it would take 25 months to break even and start benefiting from savings. If you plan to stay in your home longer than the break-even point, refinancing could be a smart financial move.
Recommended: Explore a Cash-Out Refinance
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Typical Closing Costs for a Refinance in Alabama
Mortgage refinancing in Alabama can cost 2% to 5% of the new loan amount in closing costs. This includes fixed costs such as loan application fees (up to $500), credit report fees ($25-$75), home appraisal fees ($600-$2,000), recording fees ($25-$250), and attorney fees ($500-$1,000+). Percentage-based costs often include loan origination fees (0.5%-1% of the loan amount) and title search and insurance (0.5%-1% of the loan amount), although the associated costs vary depending on the type of mortgage loan you choose.
Compare lenders’ offers and negotiate fees to reduce these costs. Some lenders may also offer a no-closing-cost refinance, but these often have increased interest rates to cover closing costs, so may not be a more cost-effective option.
Recommended: Refinancing a Jumbo Loan
Tips on Reducing Your Mortgage Refinance Payment
Before refinancing, you have several options that may help you reduce your mortgage refinance payment. You could:
• Improve your credit score by paying bills on time, reducing credit card balances, and addressing credit report errors.
• Extend the term of your home loan to reduce monthly payments, though this may increase the total interest you’ll pay.
• Appeal your property tax to potentially lower your annual tax bill, but gather evidence and consult a professional before proceeding.
• Shop for a lower homeowners insurance rate by increasing your deductible, bundling policies, or making your home more secure or storm resistant.
The Takeaway
Refinancing your home loan can be financially beneficial by helping you save on monthly payments or the total interest you’ll pay. An Alabama mortgage refinance calculator can help you estimate potential savings and determine the break-even point. Whether you’re planning to lower your monthly payments, pay off your home loan more quickly, or access your home equity, the refi calculator can help you make a well-informed decision about the financial implications of refinancing.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much does it cost to refinance your mortgage in Alabama?
Refinancing your mortgage in Alabama typically costs 2% to 5% of the new loan amount. This can include lender, credit report, appraisal, title search, and insurance fees.
How much does it cost to refinance a $300,000 mortgage?
Refinancing a $300,000 mortgage typically incurs costs ranging from $6,000 to $15,000, or 2% to 5% of the loan amount. Fixed costs can include lender, appraisal, title search, and insurance premium fees.
Do you have to put 20% down to refinance?
You don’t need to put 20% down to refinance. However, many lenders require that homeowners have 20% equity to qualify for the refinance.
At what point is it not worth it to refinance?
Refinancing is not worth it if your break-even point extends beyond the amount of time you plan to stay in your home. For example, if your closing costs are $5,000 and you save $100 per month, your break-even point is 50 months. If you plan to move within three years, refinancing might not be beneficial.
What month is best to refinance?
The best month to refinance can vary based on market conditions and your financial situation. Interest rates are often lower in the fall and winter, but monitor the market and ensure you are financially stable before proceeding.
Which bank is best for refinancing?
Choosing the best bank for refinancing depends on your financial needs and the terms offered. Consider factors such as interest rates, loan terms, and closing costs. Compare offers from multiple lenders to find the best financial benefit. Look for transparency and responsiveness in the lending process.
What credit score do you need for refinancing?
A minimum credit score of 620 is typically required for conventional loans. A higher score, such as 700 or above, can secure better terms and rates. Check your credit report for errors and improve your score before applying.
What are the advantages of refinancing your home?
Refinancing can lower your monthly payments or the total interest paid by lowering your interest rate or extending your loan term. A cash-out refinance allows you to borrow extra funds for home improvements or debt consolidation.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to a hard inquiry. However, your refinanced terms may improve your debt-to-income ratio and potentially boost your score over time. Continue making timely payments and manage your debt levels.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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DP SoFi Plus
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The NEW SoFi Plus.
The smart way to get more from your money.
Packed with brand new benefits, like the NEW SoFi Smart
Card, SoFi Plus now unlocks 20+ perks and $1,000+ in
annual value with qualifying activities.5 Plus up your
finances with our best rates, rewards, investment matches,
and more. Subscribe now for just $10/month.6
5$1,000 value: See assumptions and details below, value is not guaranteed and varies depending on benefits used. Terms apply.
NEW!
5% cash back rewards2
Get unlimited 5% cash back rewards at grocery stores with the NEW SoFi Smart Card.
4.30%
APY on savings3
Get 4.30% APY on SoFi Bank savings for up to six months with eligible direct deposit. Terms apply.
NEW!
Investment match
Get a 2% match on recurring IRA contributions7, plus a 1% match on recurring deposits8 made through SoFi Invest®.
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financial planning
Schedule unlimited one-on-one sessions with experienced SoFi Wealth Financial Planners.9
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Meet the NEW SoFi Smart Card.
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This game-changing charge card is secured by your SoFi Checking and Savings and has no hard credit pull to apply.
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Get unlimited 5% cash back rewards3 at grocery stores on everything from grapes to gravy. -
Help avoid overspending because the limit on your Smart Card equals your SoFi Checking and Savings balance.
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Grow your credit score8 with on-time payments. All with no revolving debt.
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All the rewards of the NEW Smart Card are included with your SoFi Plus subscription of just $10/month2.
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So many ways to unlock $1,0001 from SoFi Plus…
Mix and match to add up $1,000.
Save $6,000 and earn $220 in interest with our highest APY on SoFi Bank savings.
Spend $2,300 on your SoFi Credit Card each month and earn $600 in cash back rewards.
Meet with a financial planner, a $250 value.
Get unlimited access to financial planners
$250 value each time.
Schedule as many one-on-one sessions as you need.
4 sessions x $250 = $1,000.
Buy a home. Unlock a $1,000 discount.
We’ll celebrate you closing a dream home with a dream discount.
Your $1,000 discount is also available on a mortgage refinance.
Must be a SoFi Plus member when approved.
Or find your own path! There are so many ways to save and earn with SoFi Plus, we can’t wait to see what you’ll do.
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1$1,000 value: See assumptions and details below, value is not guaranteed and varies depending on benefits used. Terms apply.
The estimated value of a meeting with our financial planners is based on SoFi’s competitive assessment of similar offerings. See full terms below.
SoFi Plus members are eligible for a one-time discount on loans originated by SoFi Bank of $1,000 off the standard origination fee for home purchase or refinance mortgages. See full terms below.
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Get a 2% match on IRA contributions.7
Double your match with SoFi Plus. Get a 1% match on your IRA contributions, plus an extra 1% cash match8 on all your recurring SoFi Invest® deposits.
Schedule your deposits
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Grab up to $2,000 in stock10 with SoFi Invest®.
Combining SoFi Plus and SoFi Invest could help you make some genius money moves—starting with double the usual welcome bonus, exclusively for SoFi Plus members.
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Subscribe to SoFi Plus.
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Open and fund your active invest account with at least $50.
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Claim up to $2,000 in stock in the SoFi app!
You’ll receive up to $1,000 once you open and fund your active invest account, then your stock award will be doubled (up to $2,000) once we’ve confirmed your SoFi Plus membership status.
Get SoFi Plus
13Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $10. Probability of member receiving $2,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $2,000 are subject to decrease. See full terms and conditions.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this offer. Third party trademarks referenced herein are property of their respective owners.
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All the reasons you’re gonna love SoFi Plus.
More rewards
10% boost on cash back rewards earned through select SoFi Credit Cards14
NEW! 5% cash back rewards on all bookings (excluding air) on SoFi Travel15
2x rewards points on qualifying account activity16
More for borrowers
$1,000 home mortgage discount. Must be a SoFi Plus member when approved.17
NEW! $400 home equity loan discount17
NEW! Rate discount on new Parent student loans18
Rate discount on new personal loans19
Rate discount on student loan refinancing20
See below for specific offer terms
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Compare top SoFi Plus benefits.
These easy-to-earn benefits are just the start of the $1,000+ in annual value that SoFi Plus subscribers unlock with qualifying activities.5
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SoFi Plus members get exclusive chances to enjoy top, live entertainment with SoFi Plus Experiences.
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Subscribe to SoFi Plus now.
Unlock $1,000+ in annual value with qualifying activities5 for just $10/month.6
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DP SoFi Plus 1% Invest Match
Get a 1% match on
recurring invest deposits.1
SoFi Plus members earn an unlimited 1% match on all recurring deposits to their SoFi Invest® account, paid in cash rewards.
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What a 1% match on recurring deposits could do for you.
Build healthy habits.
Investing regular, fixed amounts is a great way to build an investing discipline and stay on top of long-term goals. When you make recurring deposits to your investment account, we’ll reward you with a 1% match.
Earn an unlimited match.
There’s no cap on the 1% match—the sky’s the limit! Simply set your recurring deposit when you want and how you want for any SoFi Invest account.
Manage risk with automated investments.
Open an auto invest account through SoFi Wealth LLC and start trading at regular intervals. If you’re taking advantage of dollar-cost averaging, you could lower your average cost per share and reduce the impact of market volatility on your portfolio.
How to start earning a 1% match with recurring deposits to SoFi Invest®.
-
Join SoFi Plus.
Two ways to join: Pay just $10/month2 or set up direct deposit to a SoFi Checking and Savings account. Subscribe to SoFi Plus now.
-
Open a SoFi Invest® account.
Open an active SoFi Invest account. through SoFi Securities LLC or an automated invest account with SoFi Wealth LLC.
-
Set up a recurring deposit to SoFi Invest.
Now, as a SoFi Plus member, you’re eligible for a 1% match on recurring SoFi Invest deposits. Set up your deposit to start earning.
NOTE: If you set up a recurring deposit to an active Invest account, you’ll need to place a trade to invest the cash.There are two ways to set up a recurring deposit. See our FAQs to learn more.
Unlock additional benefits with SoFi Plus.
Earn 3.60% APY3 on savings balances.
Receive double rewards points on qualifying activities4.
Get a 10% boost on SoFi Credit Card rewards—that’s up to 3.3% cash back rewards5.
3% cash back rewards on select hotels booked through SoFi Travel with any card6.
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FAQs
1. Set up a weekly, biweekly, or monthly ACH transfer into your SoFi Invest® account. You can do this by adding cash to your Invest account and changing the frequency from “one-time, today” to recurring on a weekly, bi-weekly, or monthly cadence.
2. If you have Autopilot through a SoFi Checking & Savings account from SoFi Bank, N.A, you can use it to set up a recurring deposit into your Automated Invest (SoFi Wealth, LLC ) account. Afterwards, click the “Set up Autopilot” button to start your recurring investment. Next, select the dollar amount or percentage you want to invest from each paycheck, and we’ll automatically transfer it into your new account.
Remember that deposits to your Active Invest (SoFi Securities, LLC) account aren’t automatically invested. You’ll need to make a trade for those funds to be invested in the market. However, deposits to your Automated Invest (SoFi Wealth, LLC) account will be traded automatically based on your pre-set investing strategy..
The 1% match is paid out in cash into the same account receiving the scheduled recurring deposit. For a limited time, some members may receive their bonus in the form of SoFi Rewards points instead of cash. The rewards points are equal in value to the cash and can be redeemed for their cash value. You can learn more about how to redeem your rewards points here.
Enrolling is simple:
1. Log in to your SoFi account
2. Once you’re logged in, select the gem icon above your account details
3. Select “Join for free”
And that’s it!
Please note that the points will expire within 90 days of earning them if you don’t enroll in the SoFi Member Rewards Program. For more details, please see the SoFi Member Rewards terms.
Examples:
Scenario 1: If you deposit $1,000 into a SoFi Invest account, you’ll earn a $10 match. If you withdraw $600 less than 5 years from the deposit date, you’ll incur an early withdrawal fee of $5.94.
Scenario 2: If you deposit $1,000 into a SoFi Invest account, you’ll earn a $10 match. Your account balance then increases to $1,310 due to investment gains. If you withdraw $250 less than 5 years from the deposit date, you’ll incur an early withdrawal fee of $0 because your equity balance remains above the pre-promotion equity in the account, plus the qualifying deposit and match amount.
Scenario 3: If you deposit $1,000 into a SoFi Invest account, you’ll earn a $10 match. Your account balance then decreases to $950 due to investment losses. If you withdraw $250 less than 5 years from the deposit date, you’ll incur an early withdrawal fee of $3.07 because your equity balance fell below the pre-promotion equity in the account, plus the qualifying deposit and match amount.
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